Be Careful If News Like This!

Apart from being based on the trading time period and how to open a position, techniques for taking trading opportunities can also rely on forex news release moments. This way of trading is based on the belief that the release of fundamental data has an important impact on being able to move prices significantly, thus providing trading opportunities for traders who can take advantage of it.

High impact news releases are often accompanied by volatility, one of the things that forex traders are interested in making big profits as quickly as possible. In less than 1 hour, the price can move up to hundreds of pips. News releases generally affect market sentiment quickly, especially if the news release is related to the state of the economy of a country.

The news release will cause tug-of-war between buyers and sellers some time before the news release. This condition will be indicated by the formation of a doji candlestick whose tail and head are almost the same length on the hourly timeframe (h1, h4).

Once the news release establishes the score, the market will respond quickly. If the score is positive, usually the seller will immediately leave the market, so the price immediately skyrockets. On the other hand, if the score is negative, buyers will lose momentum to maintain their position, so that the market is dominated by sellers.

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